“Rent agreement” itself has become a significant problem for everyone in our society. With the
increase in population, demand is also increasing. So, people are facing many problems
regarding the rent agreement.
As we already had a brief discussion regarding the rent agreement, so let us have some
discussion about some essential clauses of the rent agreement.
Here we go!
When it comes to the security deposit, it is different for different cities. If we talk about a city like
Mumbai, 10 months security deposit is mandatory. 2BHK flats in Mumbai are always on
demand. Whereas, if we talk about NCR, 5-6 months security deposit is enough.
Though security deposit is refundable, many times there are disputes between the people
regarding this. So, always keep in mind that whenever you go for rent agreement, make sure to
mention that “Security deposit is refundable.” For confirmation always ask for a deposit with
details of cheque no., date and signature of the owner.
Prepaid or postpaid rent:
Another important factor to be kept in mind when it comes to the rental agreement. Always be
transparent with whether you will pay the rent in advance or after the month is over. This can be
a widespread reason for dispute between a renter and the owner.
Many times it happens that before giving the house on rent, owners agree with whatever the
renter says, but after some time they lose the track. So, it is very important to always be very
clear with prepaid or postpaid rent.
Lock in period:
Nowadays owners insist regarding lock-in period in the rent agreement. As such, there is a lock-
in period of 6 months, but because of the clause, there should be no lock-in period in the rent
agreement. Owner/tenant must serve a notice of one month to vacate the flat.
Penalty for delay in Refund:
For the tenant, the biggest difficulty is to get a refund of the deposit. This is done intentionally by
the owner when he/she knows that the tenant is moving out and the amount is huge. In such
cases, the owner keeps giving excuses.
So, always make sure that in rent agreement it is mentioned that if the owner fails to refund the
deposit, then the tenant can leave the flat without paying the rent. Owner is also liable to pay a
compensation of Rs 1000 per day until and unless the security deposit is refunded.
Never forget to mention that who will bear the maintenance charges and whether it will be
included in rent or not. For owners, it is beneficial to not include maintenance charges in rent as
it will help them in taxation.
Apartment associations keep adding an additional amount for a sinking fund, corpus fund,
painting, etc. This additional amount should be handled by the owner only. The reason behind
this is that it adds long term value to the property.
So, always make sure to mention that the owner will bear all these charges.
List of fittings and fixtures:
Every tenant must not forget to mention the list of fittings and fixtures in the rent agreement.
Make sure that the owner will be responsible for whatever happens with fittings and fixtures.
Like no. of fans, geysers, tube lights, AC’s, etc.
There is always a dispute between the owner and the tenant who will pay the taxes. If the owner
is also sharing the property, then it depends upon the mutual understanding. Either party can
pay government taxes.
Wear, tear and damages:
In rent agreement, the tenant should always mention that he is only liable to pay the cost of
damages which does not come under natural wear and tear.
Terms for renewal:
To avoid and prevent future disputes, it should be mentioned on an agreement that there is an
agreement for renewal if both the parties agree.
If the tenant stays for a more extended period, it is not beneficial for brokers. So, for their own
benefit, they charge brokerage at the time of renewal of rent agreement.
As we all know that 1BHK flats are the most common ones, so NoBrokers this list of 1BHK flats
can help you find flat on rent. Moreover, you should also discuss brokerage with the owner as
there will not be any payout to the broker at the time of renewal.
The Final words:
We are well aware of the issues regarding rent agreement. So, we discussed about the subject
and its clauses.
We tried our best to discuss all the necessary details regarding rent agreement. If you still have
any doubts or queries, just feel free to contact and ask us. If you have some other details apart
from the mentioned details, must share with us. Having a two-way conversation will be great.
Hope the content was helpful for you.